GDP, Life Expectancy, and Education Expenditure across the Globe

Tomas Hossain-Aguilar

2024-10-07

Introduction

  • Visualize and detail distributions of global GDP per capitas, Life-Expectancies, and Education Expenditure.

    • GDP per capita and life expectancy
    • nation’s expenditure on education as a proportion of total GDP.

The data used throughout this study is drawn from World Development Indicators World Bank (2022).

GDP per capita

Figure 1: Figure 3: Distribution of GDP per Capita (2022). Source: World Development Indicators.
  • Significant disparities in global economic prosperity
  • mean GDP per capita is approximately $20,345.71
  • standard deviation of $31,308.94
    • indicating substantial variability

More Key Statistics (GDP per capita):

  • Minimum GDP per Capita: $259.03
  • Maximum GDP per Capita: $240,862.18
  • Median (50th percentile): $7,587.59
  • 25th percentile: $2,570.56
  • 75th percentile: $25,982.63

Life Expectancy

Figure 2: Figure 4: Distribution of Life Expectancy (2022). Source: World Development Indicators.

Takeaways

  • global average of 72.42 years
  • standard deviation of 7.71 years
    • moderate variation

More Key Statistics (Life Expectancy):

  • Minimum Life Expectancy: 52.997 years
  • Maximum Life Expectancy: 85.377 years
  • Median (50th percentile): 73.51 years
  • 25th percentile: 66.78 years
  • 75th percentile: 78.475 years

GDP and Life Expectancy

Figure 3: Figure 1: GDP per Capita vs. Life Expectancy (2022). Source: World Development Indicators.

Takeaways

  • positive correlation between GDP per capita and life expectancy
  • diminishing returns as GDP per capita increases

Education Expenditure (% of GDP)

Figure 4: Figure 5: Distribution of Education Expenditure (% of GDP) (2022). Source: World Development Indicators.

Takeaways

-mean expenditure is 4.23% of GDP - standard deviation of 2.07%

More Key Statistics (Education Expenditure):

  • Minimum Education Expenditure: 1.027%
  • Maximum Education Expenditure: 16.582%
  • Median (50th percentile): 3.887%
  • 25th percentile: 2.898%
  • 75th percentile: 5.156%

Top 10 Countries by Education Expenditure (% of GDP) in 2022

Figure 5: Figure 2: Top 10 Countries by Education Expenditure (% of GDP) (2022). Source: World Development Indicators.

Further Visualizing

Public Spending on Education as a Percentage of GDP

Another visual of education expenditure as a percentage of GDP from Our World in Data (2023):

Revisiting Summary Statistics

Table 1: Table 1: Key Statistics of Selected Indicators. 
       gdp_per_capita  life_expectancy  education_expenditure_gdp_share
count          203.00           209.00                           105.00
mean         20345.71            72.42                             4.23
std          31308.94             7.71                             2.07
min            259.03            53.00                             1.03
25%           2570.56            66.78                             2.90
50%           7587.59            73.51                             3.89
75%          25982.63            78.47                             5.16
max         240862.18            85.38                            16.58

McKinsey’s Analysis “Pixel’s of Progress: Chapter 3”

Our analysis of the relationship between GDP per capita and life expectancy in Figure Figure 3 reveals a positive correlation, indicating that higher economic prosperity generally leads to better health outcomes. However, we also observed diminishing returns at higher GDP levels and significant variability among countries with similar economic standings. This suggests that factors beyond mere economic wealth—such as healthcare infrastructure, education quality, and social policies—play crucial roles in determining life expectancy.

McKinsey Global Institute’s “Pixels of Progress: Chapter 3” McKinsey Global Institute (2023) echoes these findings by exploring how advancements in various sectors contribute to human development beyond traditional economic metrics. The article emphasizes that while economic growth is essential, it is not sufficient on its own to ensure improved life expectancy and overall well-being. Investments in healthcare access, education, and technological innovation are highlighted as critical drivers of progress.

McKinsey Global Institute. 2023. “Pixels of Progress: Chapter 3.” https://www.mckinsey.com/mgi/our-research/pixels-of-progress-chapter-3.
Our World in Data. 2023. “Total Government Expenditure on Education (.” https://ourworldindata.org/grapher/total-government-expenditure-on-education-gdp.
World Bank. 2022. “World Development Indicators.” https://databank.worldbank.org/source/world-development-indicators.